SINGAPORE – China Hainan Rubber Industry Group, which is listed on the Shanghai Stock Exchange, is acquiring 574.2 million shares in Halcyon Agri Corp at 31.5 US cents apiece for a total cash consideration of US$180.9 million (S$248.5 million).

This represents a 36 per cent stake in Halcyon Agri, triggering a mandatory conditional cash offer for all the shares in the Singapore-listed company as the acquisition will result in China Hainan Rubber owning more than 30 per cent of Halcyon Agri.

Halcyon Agri shares jumped on Thursday after the offer was announced. They were up 9.5 cents, or 32.8 per cent, at 38.5 cents as at 11am.

The offer price of 31.5 US cents is 50.3 per cent above the last transacted price of 29 Singapore cents for Halcyon Agri on Nov 11 – the last full trading day before the announcement.

It is also 73.3 per cent higher than the volume-weighted average price (VWAP) of Halcyon Agri for the one-month period up to Nov 11, and at a 78 per cent premium to the three-month VWAP.

China Hainan Rubber will make a formal offer after its purchase of the 36 per cent stake in Halcyon Agri from Sinochem International is completed and certain pre-conditions are met. THE BUSINESS TIMES